ISLAMABAD, PAKISTAN / RankWire.AI / – Pakistan’s federal state-owned enterprises had accumulated liabilities totaling approximately $36.5 billion at the end of December 2025. This figure represents a 14.3% increase from the previous year, adding around $4.7 billion at current exchange rates. The Ministry of Finance disclosed these numbers in its latest six-month review of federal state-owned enterprises. During the reporting period, debt levels exceeded the $36 billion mark. All dollar amounts referenced are based on the October 7, 2026 exchange rate.
Loss-making state enterprises experienced daily losses of about $10.1 million over the six-month span. Meanwhile, government support in the form of subsidies, grants, loans, and equity injections averaged roughly $23.8 million per day. When annualized, these losses combined with government support total approximately $9 billion. The daily support amount was more than twice the estimated daily loss. These figures illustrate the ongoing overlap between operational losses and direct fiscal backing across the federal enterprise portfolio.
The composition of debt included approximately $9.4 billion in foreign currency liabilities and around $11.2 billion in bank borrowings. Development loans issued by the government amounted to nearly $7.6 billion. Unfunded pension obligations were estimated at about $7.2 billion, while sovereign guarantees exceeded roughly $7.6 billion. The Central Monitoring Unit also reported a 40% year-on-year rise in foreign loans. Additionally, cash development loans increased by 25% over the same period, further expanding the government’s financial commitments.
Debt Exposure is Spread Across Multiple Borrowing Channels
A separate measure from the central bank indicated a significantly lower total debt figure because it employs different classifications and coverage. The State Bank of Pakistan reported public-sector enterprise debt and liabilities of around $10.7 billion for December 2025. Consequently, the finance ministry’s figure was roughly $25.7 billion higher. The ministry’s review encompasses a broader range of obligations across the entire federal SOE portfolio. This difference in scope means the two totals are not directly comparable.
During the same period, Pakistan’s total circular debt in the power sector approached $11.9 billion. The gross flow of circular debt in power reached about $1.35 billion in the first half of fiscal 2026. Distribution-company inefficiencies contributed approximately $405 million, while under-recoveries added another $112 million. During the six months, equity injections into state enterprises increased to about $813 million, mostly to settle power-sector obligations.
Power Sector Continues to Strain Public Finances
The report identified power distribution as a significant source of losses within the state-enterprise portfolio. These losses were attributed to technical deficiencies exceeding regulatory standards, poor recovery rates, and the persistent buildup of circular debt. The six-month period saw an increase of roughly $517 million in circular-debt stock. Infrastructure and energy sector entities contributed most to this loss profile. Conversely, profitable state enterprises remained concentrated in sectors such as oil and financial services.
The review covering July through December 2025 was published on October 5, 2026. It highlights that federal SOE debt exceeded $36 billion, with nearly $12 billion in total circular debt. Major components of the liabilities include foreign-currency obligations, bank loans, government lending, guarantees, and pension liabilities. Despite significant fiscal transfers during this period, debt levels continued to grow. The figures offer the most recent consolidated assessment of Pakistan’s state-enterprise debt and the government’s ongoing financial support.